Capital Budgeting Methods Used in Investment Project Evaluation: The Example of Top 500 Industrial Enterprises of Turkey

Süreyya YILMAZ Özekencä° and Hatice DÃœZAKIN

Fiscaoeconomia, 2023, issue 3

Abstract: The main aim of this study is to determine the capital budgeting methods preferred by Turkey's Top 500 Industrial Enterprises when evaluating their investment projects and the usage rates of the capital budgeting techniques. Also, it is aimed to determine the relationship between the capital budgeting methods preferred by both Turkey's Top 500 Industrial Enterprises and companies whose stocks are traded in Borsa Istanbul and firm size, exports, year of establishment, financial risk, education level of managers, sector, and firm performance. The study made use of a questionnaire survey. The survey was used as the data collection method in the study and the survey questions were applied to 500 Largest Industrial Enterprises of Turkey announced by the Istanbul Chamber of Industry in 2018, in 2020. The association between the obtained data was shown using logistic regression analysis. The findings indicated that a statistically significant relationship was determined between the education level, sector and firm age in both Turkey's Top 500 Industrial Enterprises and the companies whose stocks are traded in Borsa Istanbul (Istanbul Stock Exchance), and the preferred methods. However, there is no significant relationship was found between the methods preferred by the companies in Turkey's Top 500 Industrial Enterprises and the firm size, there is a significant relationship was found between the methods preferred by the companies whose stocks are traded in Borsa Istanbul and the firm size. A significant relationship was determined between the export and the methods preferred by the companies in Turkey's Top 500 Industrial Enterprises, but a significant relationship was not found between the companies whose stocks are traded in Borsa Istanbul and their export and firm performance.

Keywords: Capital budgeting techniques; Top 500 Industrial Enterprises of Turkey; real option method (search for similar items in EconPapers)
JEL-codes: C21 G30 G32 I20 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:230316

DOI: 10.25295/fsecon.1311053

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